Purple Innovation (PRPL) Announces $50M Public Offering of Class A Common Stock

Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple" or the "Company"), a comfort innovation company known for creating the "World's First No Pressure® Mattress," today announced it intends to sell $50 million of its Class A common stock in an underwritten public offering. The Company intends to grant the underwriters a 30-day option to purchase up to $7.5 million of its shares of Class A common stock. The offering is subject to market and other conditions, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.

The Company intends to use net proceeds from the offering to discharge outstanding indebtedness under the Company's Credit Agreement, dated as of September 3, 2020 and amended as of February 28, 2022 and March 23, 2022, with the lenders party thereto and KeyBank National Association, as administrative agent, which provides for a $45.0 million term loan and a $55.0 million revolving line of credit. There is currently approximately $24.7 million outstanding under the term loan and no amounts outstanding under the revolving line of credit. The term loan matures on September 3, 2025 and has a current annual interest rate of 8.98%. The Company intends to use the net proceeds from this offering, after discharging indebtedness under the Credit Agreement, for working capital and general corporate purposes, which may include working capital, capital expenditures, other corporate expenses and acquisitions of complementary products, technologies or businesses. The Company does not currently have binding agreements or commitments to complete any such transactions or, except as described above, to make any such principal repayments from the proceeds of this offering.

BMO Capital Markets and KeyBanc Capital Markets are acting as joint-book-running managers.

The proposed offering will be made pursuant to an effective shelf registration statement (File No. 333-269005) that was previously filed with the Securities and Exchange Commission (the "SEC") on December 27, 2022 and amended on January 27, 2023. This offering will be made only by means of a prospectus. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained on the SEC's website, www.sec.gov, or from BMO Capital Markets, Attention: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, New York 10036, by telephone at (800) 414-3627 or by email at [email protected]; or KeyBanc Capital Markets Inc., Attention: Equity Syndicate, 127 Public Square, 7th Floor, Cleveland, Ohio 44114, by telephone at (800) 859-1783.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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